Having a US bank account is beneficial if you do business in the US, even when you are not a resident there.
A US bank account makes handling payments easier. It also allows you to avoid expensive foreign exchange fees. Furthermore, certain retail websites require you to have a US bank account.
Can a foreigner open a US bank account?
Unfortunately, opening a US bank account as a non-US resident can be rather difficult. Therefore, a workaround is to set up a US business entity first and then to open a corporate bank account.
Setting up a US LLC for your foreign business can be a good idea in general, as the incomes can be tax-free in the US in many cases.
A US company is straightforward to set up. The whole process takes about 2-6 weeks, depending on the state of incorporation. Once the company has been set up, you can start the process of opening a bank account.
Which banks open accounts for foreigners remotely?
When it comes to opening a US business account remotely as a foreigner, big traditional brick-and-mortar banks do not offer remote openings for foreign-owned US companies. However, some so-called virtual neo-banks offer the opening of an account for foreigners without visiting the US.
These virtual banks are not real banks but rather fin-tech companies that use the banking infrastructure of some real US banks. They create and manage the customer support, banking platform, and card issuing.
Virtual banks offer most of the same features and benefits that real banks offer, including wire transfers, business debit cards, and FDIC insurance. They will meet the banking needs of most foreign-owned US companies.
Opening a bank account in the US in person
Another option is to travel to the US and open an account in one of the traditional brick-and-mortar banks in person. Of course, this is easier if you have a US visa, or you are a citizen of a country that doesn’t need a visa to travel to the US.
You might need to go to a few different banks as some might not be willing to open an account for a foreign-owned US company. Sometimes, even different branches of the same bank have different policies.
So the best way would be to call a few banks in the city you are visiting. Inquire over phone whether they will open an account for a foreign-owned US company and what their requirements are.
Some banks might tell you that this is against some law or government policy. However, this is not correct. Banks can open business bank accounts for foreign-owned US companies; some just choose not to do it because of their internal policies or the decision of the banker you are talking with.
Requirements for opening a US business bank account
No matter whether opening a business bank account remotely or in person, there are specific requirements. Most banks will request the following:
1) Articles of Organization/Incorporation
The proof of registration of your US entity that is issued by the state where you incorporated.
2) EIN letter
The Employer Identification Number (EIN), which is the company’s federal tax ID. The Internal Revenue Service (IRS) issues this EIN and sends you letter 147C or CP 575.
3) Operating Agreement
An agreement among the company’s members on the rights of ownership and how the company will be managed. This document is created when setting up the business entity.
4) A real US business address
As of 2024, you need a real physical address. It cannot be a virtual office, mail forwarding service, or a registered agent service. The address must be listed on the Articles of Organization and the EIN letter.
5) Passports of all the owners and signers on the account
Banks won’t accept passports of certain countries. Be sure to check whether your country is on the blacklist.
How to open a US bank account for non-residents?
If all this sounds a bit daunting, don’t worry. We can help you open an account with a reliable virtual bank that we partner and work closely with . Please note that we cannot help with personal US bank accounts, only corporate accounts!
Our team at Entity Inc. has helped thousands of non-US residents set up a US company and open a bank account for the company in many locations.
Talk to our experts